A Report on

Court Annexed Mediation

Submitted by:

Gumban, Stephen
Mines, Eula
Sauza, Michael
Ugay, Rommel Jay

Submitted to:

Atty. Francis Earl Anthony B. Valdez

 DISCUSSION

Alternative Dispute Resolution System

It refers to any process or procedure used to resolve a dispute or

controversy, other than by adjudication of a presiding judge of a court or an
officer of a government agency, in which a neutral third party participates to
assist in the resolution of issues, which includes arbitration, mediation,
conciliation, early neutral evaluation, mini-trial, or any combination thereof.

Concept of Court Diversion of Pending Cases

The diversion of pending court cases both to Court-Annexed Mediation

(CAM) and to Judicial Dispute Resolution (JDR) is plainly intended to put an
end to pending litigation through a compromise agreement of the parties and
thereby help solve the ever-pressing problem of court docket congestion. It is
also intended to empower the parties to resolve their own disputes and give
practical effect to the State Policy expressly stated in the ADR Act of 2004
(R.A. No. 9285), to wit:

“to actively promote party autonomy in the resolution of

disputes or the freedom of the parties to make their own
arrangement to resolve disputes. Towards this end, the State
shall encourage and actively promote the use of Alternative
Dispute Resolution (ADR) as an important means to achieve
speedy and impartial justice and de-clog court dockets.”

Indigenous ADR under CAM

Such State Policy promoting party autonomy, would necessarily include

recognition of indigenous modes of dispute resolution.

The Three Stages of Diversion

Court diversion is a three-stage process.

The first stage is the Court-Annexed Mediation (CAM) where the judge refers the
parties to the Philippine Mediation Center (PMC) for the mediation of their
dispute by trained and accredited mediators.

Upon failing to secure a settlement of the dispute during the first stage, a second
attempt is made at the JDR stage.

The third stage is during the appeal where covered cases are referred to the
PMC-Appeals Court Mediation (ACM) unit for mediation.

The ultimate common end of both the Katarungang Pambarangay Law and
Court-Annexed Mediation is to restore the role of the judiciary as the forum of
last recourse to be resorted to only after all prior earnest efforts to arrive at
private accommodation and resolution of disputes have failed.
Mediation

Mediation is a voluntary process in which a mediator, selected by the

disputing parties, facilitates communication and negotiation, and assist the
parties in reaching a voluntary agreement regarding a dispute.

Court-Annexed Mediation (CAM)

It refers to a voluntary process conducted under the auspices of the court

by referring the parties to the Philippine Mediation Center (PMC) Unit for the
settlement of their dispute, assisted by a Mediator accredited by the Supreme
Court.

Cases Subject to CAM

1. All civil cases and the civil liability of criminal cases covered by the Rule
on Summary Procedure, including the civil liability for violation of B.P. 22,
except those which by law may not be compromised;
o Violations of traffic laws, rules and regulations;
o Violations of the rental law;
o Violations of municipal or city ordinances;
o All other criminal cases where the penalty prescribed by law for the
offense charged is imprisonment not exceeding 6 months, or a fine
not exceeding P1,000.00, or both: in offenses involving damage to
property through criminal negligence, where the imposable fine
does not exceed ten thousand pesos (P10,000.00).

2. Special proceedings for the settlement of estates;

3. All civil and criminal cases filed with a certificate to file action issued by
the Punong Barangay or the Pangkat ng Tagapagkasundo under the
Revised Katarungang Pambarangay Law;

4. The civil aspect of Quasi-Offenses under Title 14 of the Revised Penal

Code;

5. The civil aspect of less grave felonies punishable by correctional

penalties not exceeding 6 years imprisonment, where the offended party
is a private person;

6. The civil aspect of estafa, theft and libel;

7. All civil cases and probate proceedings, testate and intestate, brought on
appeal;

8. All cases of forcible entry and unlawful detainer brought on appeal;

9. All civil cases involving title to or possession of real property or an interest

therein brought on appeal; and
 10. All habeas corpus cases decided by the first level courts in the absence
of the Regional Trial Court judge, that are brought up on appeal

Rationale for expanded mediation jurisdiction over the civil liability for
more serious offenses

Deterrence, which is achieved from a consistent and swift imposition of

the appropriate penalty imposed for the crime committed, is the principle upon
which societal security rests.

It is for this reason that Article 2034 of the Civil Code provides that:
“There may be a compromise upon the civil liability arising from the offense, but
such compromise shall not extinguish the public action for the imposition of the
legal penalty.”

It is significantly important to note that the above-quoted statutory

provision does not restrict the crime mentioned to the gravity of the imposable
penalty as a condition for allowing a compromise agreement to be reached on
the civil liability arising from the crime. Presumably, therefore, the allowed
compromise of civil liability applies to all crimes, subject only to the policy
considerations of deterrence variables arising from the celerity, certainty and
severity of punishment actually imposed.

Expansion of mediation jurisdiction over less grave felonies (punishable

by correctional penalties of not exceeding 6 years) is justified since, presumably,
the deterrent effect upon which societal security rests is not the principal
purpose of correctional penalties. They are intended for the rehabilitation and
correction of the offender. It is for this reason that offenses punishable by
correctional penalties are subject to probation.

The qualified offender granted probation is given conditional freedom and

released to society. It is further relevant and significant to note that the
Department of Justice has initiated and is running a program of training
prosecutors to be mediators for criminal cases where the imposable penalty
does not exceed six (6) years.

In contrast, the penalties classified under the Revised Penal Code as

afflictive and capital are explicit that their purpose is punishment. Probation is
denied to convicts who are imposed said afflictive penalties, thereby showing
that isolation from society through imprisonment is necessary for the protection
of society. Thus, the imposition of afflictive punishment for grave offenses is
surely the underlying basis for achieving the principle of deterrence, not only of
the person punished but also of the general public, through the principle of
exemplarity.

Further, the expansion to less grave offense is needed if a greater impact

of court diversion of pending cases is to be achieved. This is so since civil cases
constitute only a small 16% of all cases filed in court, while special proceedings
constitute even a smaller 7.6%.
 Under the expanded jurisdiction of the first level courts, all less grave
felonies will fall under their original and exclusive jurisdiction.

Cases that cannot be referred to CAM

1. Civil cases which by law cannot be compromised, as follows:

o The civil status of persons;

o The validity of a marriage or a legal separation;
o Any ground for legal separation;
o Future support;
o The jurisdiction of courts; and
o Future legitime.

2. Civil aspect of non-mediatable criminal cases;

3. Petitions for Habeas Corpus;

4. All cases under Republic Act No. 9262 (Violence against Women and
Children); and

5. Cases with pending application for Restraining Orders/Preliminary

Injunctions.

However, in cases covered in numbers 1, 4 and 5 where the parties inform

the court that they have agreed to undergo mediation on some aspects thereof,
e.g., custody of minor children, separation of property, or support pendente lite,
the court shall refer them to mediation.

Procedure

1. After the last pleading has been filed, the judge shall issue an order
requiring the parties to forthwith appear before the concerned Philippine
Mediation Center (PMC) Unit staff to start the process for the settlement
of their dispute through mediation. On the same date, the court shall give
to the PMC a copy of the Order for mediation.

2. Individual parties are required to personally appear for mediation. In the

event they cannot do so, they can send their representatives who must be
fully authorized to appear, negotiate and enter into a compromise,
through a Special Power of Attorney.

3. Corporations, partnerships, or other juridical entities shall be represented

by a ranking corporate officer fully authorized by a Board Resolution to
offer, negotiate, accept, decide and enter into a compromise agreement,
without need of further approval by or notification to the authorizing party.

4. The Order issued shall include a clear warning that sanctions may be
imposed upon a party for failure to comply therewith, in accordance with
the Section below on sanctions.
 5. On the date set in the Order, the parties shall proceed to select a mutually
acceptable mediator from among the list of accredited mediators. If no
agreement is reached, the PMC Unit Staff shall, in the presence of the
parties and the Mediators, choose by lot the one who will mediate the
dispute from among the Mediators inside the Unit, ensuring a fair and
equal distribution of cases: Provided, however, that in exceptional
circumstances where special qualifications are required of the mediator,
the parties shall be given an opportunity to select from the entire list of
accredited mediators.

6. The Mediator shall be considered an officer of the court while performing

his duties as such or in connection therewith.

7. The concerned Mediator shall forthwith start the mediation process,

unless the parties and mediator agree to reset the initial mediation
conference, which shall not be later than five (5) days from the original
date.

8. At the initial conference, the Mediator shall explain to both parties the
mediation process, stressing the benefits of an early settlement of their
dispute based on serving their mutual interests, rather than the legal
positions taken by them.

9. With the consent of both parties, the Mediator may hold separate
caucuses with each party to determine their respective real interests in
the dispute. Thereafter, another joint conference may be held to consider
various options that may resolve the dispute through reciprocal
concessions and on terms that are mutually beneficial to both the parties.

10. The Mediator shall not record in any manner the proceedings of the joint
conferences or of the separate caucuses. No transcript or minutes of
mediation proceedings shall be taken. If personal notes are taken for
guidance, the notes shall be shredded and destroyed. Should such record
exists, they shall not be admissible as evidence in any other proceedings.

11. If no settlement has been reached at the end of the period given, the case
must be returned to the referring judge.

Sanctions

The court, upon recommendation of the Mediator, may impose sanctions

upon a party who fails to appear before the Philippine Mediation Center (PMC)
Unit as directed by the referring judge, or upon any person who engages in
abusive conduct during mediation proceedings, as provided for in the Rules of
Court as part of the Pre-Trial and other issuances of the Supreme Court,
including, but not limited to censure, reprimand, contempt, requiring the absent
party to reimburse the appearing party his costs, including attorney’s fees for
that day up to treble such costs, payable on or before the date of the re-
scheduled setting. Sanctions may also be imposed by the referring judge upon
his own initiative or upon motion of the interested party.

Upon justifiable cause duly proved in the hearing called on the motion to
reconsider filed by the absent party, concurred in by the concerned mediator, the
sanctions imposed may be lifted or set aside in the sound discretion of the
referring judge.

Duration of Mediation in the PMC

The Mediator shall have a period of not exceeding thirty (30) days to
complete the mediation process. Such period shall be computed from the date
when the parties first appeared for the initial conference as stated in the Order to
appear. An extended period of another thirty (30) days may be granted by the
court, upon motion filed by the Mediator, with the conformity of the parties.

Suspension of periods

The period during which the case is undergoing mediation shall be

excluded from the regular and mandatory periods for trial and rendition of
judgment in ordinary cases and in cases under summary proceedings.

Settlement

If full settlement of the dispute is reached, the parties, assisted by their

respective counsels, shall draft the compromise agreement which shall be
submitted to the court for judgment upon compromise or other appropriate
action.

Where compliance is forthwith made, the parties shall instead submit a

satisfaction of claims or a mutual withdrawal of the case and, thereafter, the
court shall enter an order dismissing the case.

If partial settlement is reached, the parties shall, with the assistance of

counsel, submit the terms thereof for the appropriate action of the court, without
waiting for resolution of the unsettled part.

In relation to the unsettled part of the dispute, the court shall proceed to
conduct Judicial Dispute Resolution (JDR) proceedings.

Mediation Fee

The mediation fee is the amount collected by the Clerk of Court from the
filing of civil cases and private complainant in criminal cases.

In the Regional Trial Courts and the First-Level Courts, the Clerks of Court
shall collect the amount of FIVE HUNDRED PESOS (P500.00) upon the filing of
the following:
  Complaint or an Answer with a mediatable permissive counterclaim or
cross-claim, complaint-in-intervention, third-party complaint, fourth-party
complaint, etc., in civil cases, a Petition, an Opposition, and a Creditors’
Claim in Special Proceedings;
 Complaint/Information for offenses with maximum imposable penalty of
prision correccional in its maximum period or six years imprisonment,
except where the civil liability is reserved or is subject of a separate
action;
 Complaint/Information for estafa, theft, and libel cases, except where the
civil liability is reserved or is subject of a separate action;
 Complaint/Information for Quasi-Offenses under Title 14 of the Revised
Penal Code;
 Intellectual Property cases;
 Commercial or corporate cases; and
 Environmental cases
 The Clerks of Court of the First Level Courts shall collect the amount of
FIVE HUNDRED PESOS (P500.00) upon the filing of a Notice of Appeal
with the Regional Trial Court.

The Clerks of Court of the Regional Trial Court shall collect the amount of
ONE THOUSAND PESOS (P1,000.00) upon the filing of a Notice of Appeal with
the Court of Appeals or the Sandiganbayan.

In the Court of Appeals and Court of Tax Appeals, the Clerks of Court shall
collect the amount of ONE THOUSAND PESOS (P1,000.00) upon the filing of a
mediatable case, petition, special civil action, a comment/answer to the petition
or action, and the appellee’s brief. The Clerk of Court of the Court of Tax
Appeals shall also collect the amount of ONE THOUSAND PESOS (P1,000.00)
for the appeal from the decision of a CTA Division to the CTA En Banc.

The mediation fee is intended as a contribution to promote mediation. It is not

collected for mediation services rendered or to be rendered.

Exemptions from Payment of Mediation Fees

 Pauper litigants as determined by the Court. However, despite such

exemption, the court shall provide that the unpaid contribution to the
Mediation Fund shall be considered a lien on any monetary award in a
judgment favorable to the pauper litigant.
 Accused/accused-appellant.
 The Republic of the Philippines, its agencies and instrumentalities are
exempt from paying the legal fees provided in the rule. Local
Governments and Government-Owned or Controlled Corporations
(GOCC) with or without independent charters are not exempt from paying
such fees.
 However, all court actions, criminal or civil, instituted at the instance of the
provincial, city or municipal treasurer or assessor under Sec. 280 of the
Local Government Code of 1991 shall be exempt from the payment of
Court and Sheriff’s Fees.
  Tenant-Farmer, agricultural lessee or tiller, settler or amortizing owner-
cultivator (P.D. No. 946, Sec. 16, June 17, 1976).
 Indigent Clients of the Public Attorney’s Office (OCA Circular No. 121-
2007, Dec. 11, 2007).
 Clients of the National Committee on Legal Aid (NCLA) and of Legal Aide
Offices in the Local Chapters of the Integrated Bar of the Philippines
(OCA Circular No. 137-2009, October 7, 2009).

How to become a Mediator?

To become a Mediator, the applicant must possess the following qualifications:

1. Bachelor’s degree
2. At least 30 years of age
3. Good moral character
4. Willingness to learn new skills and render public service
5. Proficiency in oral and written communication in English and Filipino

Procedure

Then, the applicant must submit the following documents:

1. Application Letter
2. Accomplished Personal Information Sheet
3. Curriculum Vitae with 2x2 picture
4. College School Records
5. NBI and Police Clearance
6. Two (2) Certificates of Good Moral Character from two persons who are not
related to the applicant

The Philippine Mediation Center Office will then administer a written

comprehension exam and interview each applicant. The qualified applicants will
be invited to join the Basic Mediation Course which is a three-and-a-half (3 ½)
day activity.

After completing the course, the Mediation Trainees will undergo a two-
month internship program, where they will handle actual cases for mediation
under the supervision of a Mentor-Coach. The Mediation Trainees are required
to settle at least three (3) out of five (5) cases assigned. The Mentor-Coach and
the PMC Unit Staff will submit an evaluation and recommendation to the PMCO.

The PMCO will evaluate the overall performance of each Mediation

Trainee and, on the basis of the evaluation, submit recommendation to the
PMCO Executive Committee. The PMCO Executive Committee then submits
the recommendation to the PHILJA Board of Trustees (BOT). The PHILJA BOT
forwards the recommendation to the Supreme Court for approval. The approval
the accreditation of the mediators is made by a Supreme Court Division,
composed of the Chief Justice and the Chairpersons of the First and Second
Division.
 CODE OF ETHICAL STANDARDS FOR MEDIATORS

I. Responsibilities to Courts

A Mediator shall be candid, accurate, and fully responsible to the trial

court concerning his qualification, availability, and all other pertinent matters. A
Mediator shall observe all administrative policies, applicable procedural rules
and statutes.

A Mediator is responsible to the judiciary for the propriety of his activities

and must observe judicial standards of fidelity and diligence.

II. Responsibilities to Parties

Impartiality. The Mediator shall maintain impartiality toward all parties.

Impartiality means freedom from favoritism or bias either by appearance, word
or by action, and a commitment to serve all parties as opposed to a single party.
At no time may a Mediator meet with any of the parties to discuss a case
referred to him for mediation without the presence or the consent of the other
party. A Mediator shall withdraw from mediation if the mediator believes he can
no longer be impartial. A Mediator shall not give or accept a gift, bequest, favor,
loan or any other form to or from a party, attorney, or any other person involved
in and arising from any mediation connection.

Competence. A Mediator shall maintain professional competence in

mediation skills, including but not limited to:

(a) staying informed of and abiding by all statutes, rules, and

administrative orders relevant to the practice of mediation; and
(b) regularly engaging in educational activities promoting professional
growth.

Conflict of Interest. The Mediator shall refrain from participating in the

mediation of any dispute if he/she perceives that participation as a Mediator will
be a clear conflict of interest. The Mediator shall also disclose any circumstance
that may create or give the appearance of a conflict of interest and any
circumstance that may raise a question as to the Mediator’s impartiality.

The duty to disclose is a continuing obligation throughout the process. In

addition, if a Mediator has represented either party in any capacity, the Mediator
should disclose that representation.

A Mediator shall disclose any known, significant current or past personal

or professional relationship with any party or attorney involved in the mediation
and the Mediator and parties should discuss on a case by case basis whether or
not to continue.
 After the Mediator makes his disclosures, and a party does not seek
inhibition, the
Mediator shall continue as such.

No Mediator shall have any interest in any property, real or personal, that
is the subject matter of the case referred to him/her for mediation. He/she may
not offer to purchase or to sell such property, whether at the inception, curing, or
at any time after the mediation proceedings, either personally or through other
parties.

Avoidance of Delays. A Mediator shall plan a work schedule, refrain from

accepting appointments when it becomes apparent that completion of the
mediation assignments cannot be done in a timely and expeditious manner, and
perform the mediation services in such a way as to avoid delays.

Prohibition Against Solicitation or Advertising. A Mediator shall not use

the mediation process to solicit, encourage, or otherwise incur future
professional services and financial gain from either or both parties. Neither shall
a Mediator make untruthful or exaggerated claims about the mediation process
and his/her qualifications.

Prohibition Against Coercion. A Mediator shall not coerce or unfairly

influence a party into a settlement agreement and shall not make substantive
decisions for any party to a mediation process.

a) Prohibition Against Misrepresentation. A Mediator shall not intentionally

or knowingly misrepresent material facts or circumstances in the course
of conducting a mediation.

b) A Balance Process. A Mediator shall promote a balanced process and

shall encourage the parties to conduct the mediation deliberations in a
non- adversarial manner.

c) Mutual Respect. A Mediator shall promote mutual respect among the

parties throughout the mediation process.

Personal Opinion. While a Mediator may point-out possible outcomes of

the case, under no circumstance may a Mediator offer a personal or professional
opinion as to how the trial court, where the case has been filed, will resolve the
dispute.

Disclosure of Fees. Except for his/her authorized fees, the Mediator in

Court- Referred Mediation shall not accept any commission, gift or other similar
forms of remuneration from parties or their representatives.

In case of Non-Court Referred Mediation, the Mediator shall enter into a

written agreement with the parties regarding reasonable fees, time and manner
of payment, before beginning the mediation.
 Confidentiality. The Mediator shall treat information revealed in mediation
in strict confidentiality except for the following:

1. Information that is statutorily to be reported.

2. Information that in the judgment of the Mediator reveals a danger of
serious physical harm either to a party, to a third person or to
himself/herself.

Role of Mediator in Settlement. The Mediator has the responsibility to see

to it that the parties consider and understand the terms of the settlement. When
a Mediator believes that a party does not understand or appreciate how a
settlement agreement may adversely affect legal rights or obligations, the
Mediator shall advise the said party to seek legal counsel.

III. Relationship with other Professionals

The Mediator shall respect the relationship between mediation and other
professional disciplines including law, medicine, science, accounting, mental
health and social services and shall promote harmony and cooperation between
Mediators and other professionals.

IV. Responsibilities to Society

Pro Bono Service. A Mediator has a professional responsibility to provide

competent service to persons seeking assistance including those unable to pay
for such services. As a means of meeting the needs of the financially
disadvantaged, a Mediator should provide mediation services pro bono or at a
reduced rate of compensation.

Support of Mediation. A Mediator should support the advancement of

mediation by encouraging and participating in research, evaluation, or other
forms of professional development and public education.